Consumers to 'feel the pinch' as inflation climbs 1.8% in January

Up from 1.6% in December

Natalie Kenway
clock • 4 min read

UK inflation reached a two-year high of 1.8% in January, nearing the Bank of England's 2% target, as fuel prices continued to climb higher.

Sterling fell almost 0.5% after it was revealed the UK Core Price Index (CPI) hit 1.8% in January, according to the Office for National Statistics, as rising fuel and food prices hit the consumer. The pound was down 0.49% against the US dollar to $1.2640 following the announcement, while the FTSE 100 was flat at 7,282.5 points. January's inflation figure was a move higher from the 1.6% reached in December 2016, and the highest rate since June 2014 when CPI reached 1.9% and then began to fall back towards zero. In a briefing note, the ONS said: "The strong downward pull on inflation...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Advisers predict returns uptick in face of increased market volatility until 2030

Advisers predict returns uptick in face of increased market volatility until 2030

Investor Confidence Barometer from Scottish Widows

Jenna Brown
clock 07 January 2026 • 2 min read
Advisers see more market volatility coming in 2026

Advisers see more market volatility coming in 2026

Uncertainty over the global economy and UK inflation rate

Isabel Baxter
clock 06 January 2026 • 2 min read
Inflation falls faster than predicted ahead of BoE interest rate vote

Inflation falls faster than predicted ahead of BoE interest rate vote

3.2% in November

Michael Nelson
clock 17 December 2025 • 2 min read